Shares

Share capital of ABB

At December 31, 2016, ABB’s ordinary share capital (including treasury shares) as registered with the Commercial Register amounted to CHF 265,769,191.68, divided into 2,214,743,264 fully paid registered shares with a par value of CHF 0.12 per share.

ABB Ltd’s shares are listed on the SIX Swiss Exchange, the NASDAQ OMX Stockholm Exchange and the New York Stock Exchange (where its shares are traded in the form of American depositary shares (ADS) – each ADS representing one registered ABB share). At December 31, 2016, ABB Ltd had a market capitalization based on outstanding shares (total number of outstanding shares: 2,138,706,835) was approximately CHF 46 billion ($45 billion, SEK 410 billion). The only consolidated subsidiary in the ABB Group with listed shares is ABB India Limited, Bangalore, India, which is listed on the BSE Ltd. (Bombay Stock Exchange) and the National Stock Exchange of India. On December 31, 2016, ABB Ltd, Switzerland, directly or indirectly owned 75 percent of ABB India Limited, Bangalore, India, which at that time had a market capitalization of approximately INR 220 billion.

*

also called Scrip ID

Stock exchange listings (At December 31, 2016)

Stock exchange

Security

Ticker
symbol

ISIN code

SIX Swiss Exchange

ABB Ltd, Zurich, share

ABBN

CH0012221716

NASDAQ OMX Stockholm Exchange

ABB Ltd, Zurich, share

ABB

CH0012221716

New York Stock Exchange

ABB Ltd, Zurich, ADS

ABB

US0003752047

BSE Ltd. (Bombay Stock Exchange)

ABB India Limited, Bangalore, share

ABB*

INE117A01022

National Stock Exchange of India

ABB India Limited, Bangalore, share

ABB

INE117A01022

Share repurchases and cancellation

Under the share buyback program announced in September 2014, ABB repurchased a total of 146,595,000 shares for cancellation. At ABB’s General Meeting of Shareholders in 2016, the shareholders approved the cancellation of 100 million shares. This was completed in July 2016 after the required waiting period. As a result of the cancellation, the total number of ABB Ltd’s issued shares is 2,214,743,264. ABB intends to ask the shareholders at the General Meeting of Shareholders in 2017 to approve the cancellation of the remaining 46,595,000 shares that were repurchased. Further information can be found at www.abb.com/investorrelations

Changes to the ordinary share capital

In 2016, ABB paid its dividend relating to the year 2015 by way of a nominal value reduction in the par value of its shares from CHF 0.86 to CHF 0.12. Corresponding adjustments were made to the par value of ABB’s contingent and authorized shares. In 2015, ABB paid a portion of its dividend relating to the year 2014 by way of a nominal value reduction in the par value of its shares from CHF 1.03 to CHF 0.86. Corresponding adjustments were made to the par value of ABB’s contingent and authorized shares. Except as described above, there were no changes to ABB’s ordinary share capital during 2016, 2015 and 2014.

Convertible bonds and options

ABB does not have any bonds outstanding that are convertible into ABB shares. For information about options on shares issued by ABB, please refer to “Note 19 Stockholders’ equity” to ABB’s Consolidated Financial Statements contained in the “Financial review of the ABB Group” section of this Annual Report.

Contingent share capital

At December 31, 2016, ABB’s share capital may be increased by an amount not to exceed CHF 24,000,000 through the issuance of up to 200,000,000 fully paid registered shares with a par value of CHF 0.12 per share through the exercise of conversion rights and/or warrants granted in connection with the issuance on national or international capital markets of newly or already issued bonds or other financial market instruments.

At December 31, 2016, ABB’s share capital may be increased by an amount not to exceed CHF 1,200,000 through the issuance of up to 10,000,000 fully paid registered shares with a par value of CHF 0.12 per share through the exercise of warrant rights granted to its shareholders. The Board may grant warrant rights not taken up by shareholders for other purposes in the interest of ABB.

The pre-emptive rights of the shareholders are excluded in connection with the issuance of convertible or warrant-bearing bonds or other financial market instruments or the grant of warrant rights. The then current owners of conversion rights and/or warrants will be entitled to subscribe for new shares. The conditions of the conversion rights and/or warrants will be determined by the Board.

The acquisition of shares through the exercise of warrants and each subsequent transfer of the shares will be subject to the restrictions of ABB’s Articles of Incorporation (see “Limitations on transferability of shares and nominee registration” in “Shareholders” section below).

In connection with the issuance of convertible or warrant-bearing bonds or other financial market instruments, the Board is authorized to restrict or deny the advance subscription rights of shareholders if such bonds or other financial market instruments are for the purpose of financing or refinancing the acquisition of an enterprise, parts of an enterprise, participations or new investments or an issuance on national or international capital markets. If the Board denies advance subscription rights, the convertible or warrant-bearing bonds or other financial market instruments will be issued at the relevant market conditions and the new shares will be issued pursuant to the relevant market conditions taking into account the share price and/or other comparable instruments having a market price. Conversion rights may be exercised during a maximum ten-year period, and warrants may be exercised during a maximum seven-year period, in each case from the date of the respective issuance. The advance subscription rights of the shareholders may be granted indirectly.

At December 31, 2016, ABB’s share capital may be increased by an amount not to exceed CHF 11,284,656 through the issuance of up to 94,038,800 fully paid shares with a par value of CHF 0.12 per share to employees. The pre-emptive and advance subscription rights of ABB’s shareholders are excluded. The shares or rights to subscribe for shares will be issued to employees pursuant to one or more regulations to be issued by the Board, taking into account performance, functions, level of responsibility and profitability criteria. ABB may issue shares or subscription rights to employees at a price lower than that quoted on a stock exchange. The acquisition of shares within the context of employee share ownership and each subsequent transfer of the shares will be subject to the restrictions of ABB’s Articles of Incorporation (see “Limitations on transferability of shares and nominee registration” in “Shareholders” section below).

Authorized share capital

At December 31, 2016, ABB had an authorized share capital in the amount of up to CHF 24,000,000 through the issuance of up to 200,000,000 fully paid registered shares with a par value of CHF 0.12 each, which is valid through April 29, 2017. The Board is authorized to determine the date of issue of new shares, the issue price, the type of payment, the conditions for the exercise of pre-emptive rights and the beginning date for dividend entitlement. In this regard, the Board may issue new shares by means of a firm underwriting through a banking institution, a syndicate or another third party with a subsequent offer of these shares to the shareholders. The Board may permit pre-emptive rights that have not been exercised by shareholders to expire or it may place these rights and/or shares as to which pre-emptive rights have been granted but not exercised at market conditions or use them for other purposes in the interest of the company. Furthermore, the Board is authorized to restrict or deny the pre-emptive rights of shareholders and allocate such rights to third parties if the shares are used (1) for the acquisition of an enterprise, parts of an enterprise, or participations, or for new investments, or in case of a share placement, for the financing or refinancing of such transactions; or (2) for the purpose of broadening the shareholder constituency in connection with a listing of shares on domestic or foreign stock exchanges. The subscription and the acquisition of the new shares, as well as each subsequent transfer of the shares, will be subject to the restrictions of ABB’s Articles of Incorporation.

Share Developments

ABB Ltd share price trend during 2016

During 2016, the price of ABB Ltd shares listed on the SIX Swiss Exchange increased 20 percent, while the Swiss Performance Index decreased 1 percent. The price of ABB Ltd shares on NASDAQ OMX Stockholm increased 26 percent, compared to the OMX 30 Index, which increased 5 percent. The price of ABB Ltd American Depositary Shares traded on the New York Stock Exchange increased 19 percent compared to the Dow Jones Industrial Index, which increased 13 percent.

Zurich
2016 price trend for ABB Ltd shares, Zurich (line chart)2016 price trend for ABB Ltd shares, Zurich (line chart)
Stockholm
2016 price trend for ABB Ltd shares, Stockholm (line chart)2016 price trend for ABB Ltd shares, Stockholm (line chart)
New York
2016 price trend for ABB Ltd shares, New York (line chart)2016 price trend for ABB Ltd shares, New York (line chart)

Share price (data based on closing prices)

2016

SIX Swiss Exchange
(CHF)

NASDAQ OMX
Stockholm
(SEK)

New York
Stock Exchange
(USD)

Source: Bloomberg

High

22.49

199.00

22.88

Low

16.04

137.10

16.06

Year-end

21.48

191.80

21.07

Average daily traded number of shares, in millions

6.18

1.43

1.98

Dividends

With respect to the year ended December 31, 2016, ABB Ltd’s Board of Directors has proposed to distribute a dividend to shareholders in the amount of CHF 0.76 per share. This is subject to approval by shareholders at ABB Ltd’s 2017 Annual General Meeting. The proposal is in line with the company’s dividend policy to pay a steadily rising, sustainable dividend over time.

Key data

 

 

 

 

2016

2015

2014

(1)

Proposed by the Board of Directors and subject to approval by shareholders at the Annual General Meeting on April 13, 2017, in Zurich, Switzerland

(2)

Calculation based on weighted-average number of shares outstanding

(3)

Calculation based on the number of shares outstanding at December 31, 2016

(4)

Dividend per share (converted to U.S. dollars at year-end exchange rates) divided by basic earnings per share

Dividend per share (CHF)

0.76(1)

0.74

0.72

Par value per share (CHF)

0.12

0.86

1.03

Votes per share

1

1

1

Basic earnings per share (USD)(2)

0.88

0.87

1.13

Total ABB stockholders’ equity per share (USD)(3)

6.26

6.61

7.20

Cash flow from operations per share (USD)(2)

1.79

1.72

1.68

Dividend payout ratio (%)(4)

84%

85%

64%

Weighted-average number of shares outstanding (in millions)

2,151

2,226

2,288